Title 12 — Banks and BankingRelease 119-73
§2608 Title companies; liability of seller
Title 12 › Chapter CHAPTER 27— - REAL ESTATE SETTLEMENT PROCEDURES › § 2608
Summary
Stops sellers from forcing buyers to buy title insurance from a particular title company when the buyer is using a federally related mortgage loan to buy the property. If a seller does force that, the seller must pay the buyer three times the amount charged for that title insurance.
Full Legal Text
Title 12, §2608
Banks and Banking — Source: USLM XML via OLRC
(a)No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.
(b)Any seller who violates the provisions of subsection (a) shall be liable to the buyer in an amount equal to three times all charges made for such title insurance.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 180 days after Dec. 22, 1974, see section 20 of Pub. L. 93–533, set out as a note under section 2601 of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 2608
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73